Danaher Corporation (DHR)vsCarMax Inc (KMX)
DHR
Danaher Corporation
$171.16
-2.56%
HEALTHCARE · Cap: $124.33B
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 12% more annual revenue ($27.76B vs $24.78B). DHR leads profitability with a 14.9% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. DHR earns a higher WallStSmart Score of 58/100 (C).
DHR
Buy58
out of 100
Grade: C
KMX
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-24.9%
Fair Value
$137.02
Current Price
$171.16
$34.14 premium
Margin of Safety
+83.0%
Fair Value
$270.07
Current Price
$40.34
$229.73 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 22.9%
Generating 1.1B in free cash flow
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
3.7% revenue growth
ROE of 7.1% — below average capital efficiency
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : DHR
The strongest argument for DHR centers on Market Cap, Price/Book, Operating Margin. PEG of 1.11 suggests the stock is reasonably priced for its growth.
Bull Case : KMX
The strongest argument for KMX centers on PEG Ratio, Price/Book. PEG of 0.38 suggests the stock is reasonably priced for its growth.
Bear Case : DHR
The primary concerns for DHR are P/E Ratio, Revenue Growth, Return on Equity.
Bear Case : KMX
The primary concerns for KMX are Altman Z-Score, Return on Equity, Profit Margin. Debt-to-equity of 2.75 is elevated, increasing financial risk. Thin 0.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
DHR is growing revenue faster at 3.7% — sustainability is the question.
DHR generates stronger free cash flow (1.1B), providing more financial flexibility.
Monitor DIAGNOSTICS & RESEARCH industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DHR scores higher overall (58/100 vs 52/100). KMX offers better value entry with a 83.0% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Danaher Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Danaher Corporation is an American globally diversified conglomerate with its headquarters in Washington, D.C.. The company designs, manufactures, and markets professional, medical, industrial, and commercial products and services. The company's 3 platforms are Life Sciences, Diagnostics, and Environmental & Applied Solutions.
CarMax Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
CarMax is a used vehicle retailer based in the United States. It operates two business segments: CarMax Sales Operations and CarMax Auto Finance.
Visit Website →Compare with Other DIAGNOSTICS & RESEARCH Stocks
Want to dig deeper into these stocks?